Consider a Basket-Producing Firm with Fixed Capital

question 104

Multiple Choice

Consider a basket-producing firm with fixed capital.If the firm can produce 36 baskets per day with 3 workers and then increases production to 44 baskets per day with 4 workers,then which of the following statements is true?

• A)The marginal product of the fourth worker is 11.
• B)With 4 workers,the marginal product is above the average product.
• C)The firm has not yet reached the point of diminishing marginal productivity.
• D)The firm has passed the point of diminishing marginal productivity.
• E)With 4 workers,the firm's average product of labour is 8.

---

Definitions:

Header Column

The top row of a table or spreadsheet that contains the titles or headings for each column.

Apply Shading

The process of adding a background color to text, cells, or elements in a document or spreadsheet to enhance readability or emphasize information.

Modify Font Color

The process of changing the color of the text in a document or graphic design to improve readability or aesthetic appeal.

Shape Style

A pre-defined combination of shape effects, such as outline, fill, and shadow, that can be applied to shapes in graphic applications to enhance visual appearance.